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FX liquidity jumps to highest level in 3 weeks

Dollar Halts

Foreign Exchange (FX) liquidity on the investor and exporters (I&E) window has jumped to the highest levels in more than 3 weeks as rising oil prices and Central Bank dollar reserves brings confidence to the market.
The volume of trading on the window hit $156 million dollars on Friday, according to FMDQ data.
This comes as CBN dollar reserves hit a one month high of $36.4 billion as at May 28.
Pressure on the domestic currency has eased in recent weeks as the CBN resumed sales of dollars to Bureau du Changes and oil prices rose above $35 per barrel.
Nigeria receives almost all of its dollar earnings from the proceeds of sale of crude oil.
Manufacturers have complained in recent times of the inability to access dollars to import raw materials due to low FX liquidity and scarcity of dollars.

Lat week the CBN cut its benchmark interest rates in a bid to stimulate the economy.

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